Beware of TikTok vacation money tips. This expert reveals how to spot bad advice

As a financial coach and therapist who is fairly active on social media, my feed is flooded with dozens of personal finance “hacks.” With many of us looking for ways to score bargains and save money this holiday season, it’s important to review any money recommendations you receive on TikTok.

Some of the advice is good – but others may be risky or, in some cases, illegal.

Just last month, I saw TikTok reels on my feed recommending that people try this Chase Bank “hack” to get free money. Chase Bank experienced a system-wide glitch that resulted in people writing counterfeit checks to themselves, depositing them into ATMs, and being able to withdraw the money immediately. This “money hack” wasn’t just bad advice; It was actually promoting check fraud, which is a crime.

Most bad money advice on social media isn’t that extreme, but it can still be dangerous. I’ve seen Instagram Reels that encourage followers to blindly invest in certain stocks, buy and flip houses, or even start their own dropshipping business – all without explaining the risks or upfront costs.

Following the wrong money advice can have devastating financial consequences. As an expert who shares personal finance advice online, consider these tips before blindly following a social media money hack.

Read more: Fear of money? Here’s the expert advice I followed to get smarter about my finances

Always do your research

Don’t make a big financial decision based on a 30-second TikTok video. Instead, take time to research the topic and ask questions.

For example, a simple Google search for the Chase bug would have yielded news articles explaining that this “money hack” was actually check fraud.

Search for credentials

TikTok and Instagram can be helpful, but are primarily intended for entertainment. Financial advice can be redundant and boring, which is why social media influencers may be inclined to “make it interesting” by offering risky advice.

I recommend finding a certified financial planner, financial coach, accountant or auditor. To ensure that the advice you receive is not risky, you can follow them on social media rather than the influencers.

Escape from “free money”

If something feels too good to be true, it probably is. An influencer who shares a way to make “free money” is likely trying to sell you an investment opportunity or a multi-level marketing program that may encourage you to try something illegal.

The legitimate ways you may Making money is generally slow—earning interest on your savings, increasing your 401(k), or earning passive income.

Consider the risks, not just the reward

As a financial therapist, I have seen how stress affects my clients’ decisions. If you’re faced with debt or piles of bills you can’t pay, focus on the “worth” part of financial advice rather than the risks.

I encourage my clients to use their intuition and pay attention to the emotional side of their financial decisions. Journaling is a great way to do this.

You can start by making a pros and cons list. Write down the benefits, risks, and even questions you may have before taking your next step. Then research answers to these questions or meet with an accredited financial professional to learn more.

There is no shortcut to wealth

There is no secret way to get rich overnight, but there are proven steps you can follow. Although not all financial advice on social media is bad, remain cautious when following online money advice. To figure out what’s best for you financially, there are a few more steps you need to take. Live below your means, build an emergency fund, manage your debt well, and make sound investments that make you feel secure.

Read more: